Here’s a tip: if you owe money in Tennessee, get a job waiting tables.
Workers worried about garnished wages because of an unpaid bill may have gained a unique escape clause, thanks to a Tennessee Appeals Court judgment against Erlanger Health System.
The ruling could allow a worker to virtually escape wage garnishment if the majority of his pay consists of tips, attorneys say.
Ex-wives, hospitals and any other business that depends in part on wage garnishment to collect debts may have to re-think their strategy.
“Ultimately, the appeals court said if you are the employer, you do not count tip income for what is a garnishable wage,” said Chris Merkal, an attorney for Shoney’s. “This is new law.”